July 8, 2024
New Delhi, India
Daily Currency Market Analysis
USDINR
The rupee ended slightly stronger, supported by firmer Asian peers amid a decline in U.S. bond yields, although gains were tempered by local dollar demand. S&P indicated that India’s rating upgrade is possible within the next 24 months if the fiscal deficit falls to 4%. Additionally, rupee forward premiums rose, with the 1-year implied yield up 2 basis points to 1.64%, aided by the decline in U.S. bond yields. The trading range for USDINR for the day is 83.49-83.65.
EURINR
The euro climbed as the dollar weakened significantly amid growing expectations of a Fed rate cut in September. Factory orders in Germany dropped by 1.6% month-over-month in May 2024. In the Euro Area, flash estimates for June indicated that annual inflation eased to 2.5%, meeting expectations. The trading range for EURINR for the day is 89.93-90.37.
GBPINR
The GBP gained with voters casting their ballots in England, Scotland, Wales, and Northern Ireland for parliamentary elections. British consumers increased their borrowing in May by the most in four months following a dip in April. Investors are anticipating a rate cut in August after the Bank of England decided to keep interest rates steady in June. The trading range for GBPINR for the day is 106.25-106.57.
JPYINR
The JPY gained on short covering after prices dropped amid stark interest rate differentials between Japan and the US. The au Jibun Bank Japan Services PMI was revised downward to 49.4 in June 2024 from flash data of 49.8. Traders continue to evaluate the Bank of Japan’s monetary policy outlook amid a sharply depreciating Japanese Yen. The trading range for JPYINR for the day is 51.59-52.25.
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